Albertsons Companies Inc. is an American grocery company founded and headquartered in Boise, Idaho. With 2,200 stores and 250,000 employees, the company is the second-largest supermarket chain in the United States after Kroger. The company’s parent organization, Albertsons Companies LLC, is controlled by a consortium of investors led by Cerberus Capital Management.
The company was founded in 1939 by Joe Albertson, who opened his first store in Boise, Idaho. The store was successful, and Albertsons soon expanded into other parts of Idaho and then into other states.
In 2015, the company announced it would be merging with Safeway Inc., another large supermarket chain. The merger was completed in 2015, and the new company was named Albertsons Companies Inc.
The company has been through a number of changes in recent years. In 2017, it sold off its pharmacy business to CVS Health.
In 2018, it announced plans to close some underperforming stores and invest more heavily in its online business. And in 2019, it announced plans to sell off its grocery business in Canada.
Despite these challenges, Albertsons stock has been on a bit of a tear lately. After hitting a 52-week low of $16.75 in December 2018, the stock has more than doubled to its current price near $35 per share. So is Albertsons stock a buy at current levels?
There are a few things to consider before making a decision on whether or not to buy Albertsons stock. First, the company is facing some significant challenges that could weigh on its results going forward. Second, the stock is not cheap, trading at around 18 times earnings estimates for the next 12 months.
That said, there are also some reasons to be bullish on Albertsons stock. The company is still the second-largest supermarket chain in the United States and has a strong presence in key markets like California and Texas. Additionally, Albertsons is investing heavily in its online business and seems committed to turning around its Canadian operations.
So while there are risks to consider before buying Albertsons stock, there are also some potential rewards for investors who are willing to take on those risks.
Is Albertson’s stock a buy?
As with any investment decision, it’s important to do your own research before investing in a publicly traded company like Albertson’s.
